Embedding consumer taste for location into a structural model of equilibrium
|Title:||Embedding consumer taste for location into a structural model of equilibrium||Authors:||Whelan, Ciara
Walsh, Patrick P.
|Permanent link:||http://hdl.handle.net/10197/140||Date:||20-Jan-2005||Abstract:||Given that brands (products) are location specific in terms of coverage of retail stores, we allow consumers to have preferences over location and products to carry distribution costs, alongside preferences and costs over other observable and unobservable product characteristics. We embed these considerations into Berry, Levinsohn and Pakes (1995) to jointly estimate demand and cost parameters for brands (products) in Retail Carbonated Soft Drinks. Allowing for location has a very significant impact on estimated primitives and the predictive power of the structural model. As a counterfactual exercise we show the effects on welfare of an equilibrium that results from a change in the distribution of consumer taste for location.||Type of material:||Working Paper||Publisher:||University College Dublin; School of Economics||Copyright (published version):||2005, Authors||Keywords:||Consumer taste for location distributions;Differentiated products;Discrete choice;Aggregation;Structural model;Retail carbonated soft drinks||Subject LCSH:||Consumers' preferences
|Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Politics and International Relations Research Collection|
Geary Institute Research Collection
Economics Working Papers & Policy Papers
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